Company to raise Tk 750m under book building method
FE REPORT |
Aug 23, 2022 9:56:37 a.m.
Navana Pharmaceuticals’ initial public offering (IPO) is expected to open for subscription on September 13, aiming to raise Tk750 million through the bookbuilding method.
The IPO can be subscribed through the exchanges’ electronic subscription system and the subscription period ends on September 19, according to the Dhaka Stock Exchange.
Navana Pharmaceuticals received regulatory approval from the Bangladesh Securities and Exchange Commission (BSEC) on June 8 for raising Tk750 million by issuing shares.
The company’s share price limit has been set at Tk 34 each through electronic bids by eligible investors, a requirement to go public under the order book method .
Eligible investors participated in the company’s IPO share price discovery by bidding for 72 hours, from July 4 to July 7.
General investors will be able to buy its IPO shares at a discount of 30% off the closing price, depending on regulatory approval.
Additionally, Navana Pharma is allowed to pay out 15% of the IPO shares to its employees with a lock-up period of two years.
This was the company’s first IPO after the stock market regulator raised the investment limit to Tk 30 million in shares for eligible investors to enjoy an IPO quota and Tk 15 million for pension funds, recognized provident funds and gratuity funds.
The BSEC increased the amount on May 23 of this year.
Previously, the required amount was 10 million taka for each eligible investor and 5.0 million taka for pension funds, recognized provident funds and gratuity funds.
The company will use proceeds from the IPO to construct a new general manufacturing unit, construct new buildings, renovate the cephalosporin unit, repay the loan, and cover IPO expenses.
According to the financial statements of the company for nine months from July 2021 to March 2022, the net asset value (NAV) per share with revaluation is Tk 43.53 and the NAV per share without revaluation is Tk 19.02.
Earnings per share (EPS) was Tk 2.39 during the period under review and the weighted average EPS for the past five years was Tk 2.51.
The company will not be authorized to declare, approve or distribute a dividend before its listing on the capital market.
Asian Tiger Capital Partners Investments and EBL Investments are working jointly as issue manager for the company’s IPO.